US updates foreign inverter ban to include wired devices

The U.S. Federal Communications Commission (FCC) issued updated guidance on its foreign inverter ban, expanding the restricted equipment list and clarifying how manufacturers can avoid the block. 

Following input from the U.S. Department of Defense, the FCC broadened its cyber-risk definition to cover hardwired equipment. The ban now applies to any grid-interactive inverter that contains, or is built to accept, remote communication hardware operating over Ethernet, Wi-Fi, cellular, or Bluetooth, whether wireless or wired. 

The agency also clarified that inverters manufactured by entities eligible for Section 45X advanced manufacturing production credits under the Inflation Reduction Act will not be classified as foreign-made under the ban. 

This creates an alternative to standard Buy American Act (BAA) rules, which require U.S. component costs to exceed 65% of the total equipment cost through 2028 and 75% starting in 2029. 

Law firm Norton Rose Fulbright said brand ownership takes a backseat to manufacturing eligibility under the new 45X pathway: “The FCC said today that it will not treat inverters whose manufacturers are ‘eligible’ for section 45X tax credits as foreign made… The FCC said the nationality of the company making the inverter is irrelevant.” 

However, Norton Rose Fulbright noted that Foreign Entity of Concern (FEOC) rules could still complicate things, as Section 45X credits cannot be claimed by prohibited foreign entities or companies that hand effective operational control to majority Chinese-owned firms. 

The FCC also removed pure AC-to-DC rectifiers and off-grid inverters from the Covered List. Inverters already fielded or previously authorized remain eligible to receive routine software and firmware security patches, and the agency will allow small-batch imports of unauthorized models solely for non-commercial laboratory testing and R&D.